Zuma's speech, scheduled to be televised nationally at 1700
GMT, comes amid growing criticism over a taxpayer-funded 250
million (then $23 million) upgrade to his private home and years
of weak economic growth in Africa's most industrialised country.

Investors also want to know why Zuma fired two finance
ministers in one week this December. Minister Nhlanhla Nene was
replaced by relatively unknown lawmaker David van Rooyen,
sparking a selling frenzy in the markets. Zuma swiftly replaced
van Rooyen with the respected Pravin Gordhan.

BNP Paribas Securities SA economist Jeffrey Schultz said the
reshuffle "brought into question political stability of this
economy and in particular the independence of national treasury
in helping set policy in South Africa."

"The markets will be looking for some level of commitment
from government that it remains committed to sustainable fiscal
policy and a generally pro-business, pro-investment
environment," he said.

South Africa's rand currency hit a record low of 17.9950 in
January after weakening by more than a quarter to the dollar
last year. The central bank has forecast growth to reach only
0.9 percent this year. Unemployment is at 25 percent.

The agricultural sector is reeling under the worst drought
in decades, forcing Africa's top grain producer to import maize.
The mining sector, hit hard by slowing demand from China, is
shedding jobs and shutting unviable mines.

The opposition are hoping anger over the nation's economic
woes will translate into votes in upcoming local elections.

Julius Malema, the fiery leader of the far-left opposition
Economic Freedom Fighters (EFF) party, said last week he would
disrupt Zuma's speech, as he did last year, if Zuma fails to
explain why he fired the finance ministers.

The speaker of parliament has vowed to quash any attempts to
disrupt the proceedings. Last year security officials removed
Malema and other EFF MPs.

In the lead-up to the speech, police set up barbed wire
barricades to keep protesters away from parliament. But about
300 marchers walked through Cape Town's main street, shouting:
"Zuma Must Fall!" and waving placards. Elsewhere in the city,
pro-Zuma marchers also began to gather.
(Writing by James Macharia; Editing by Katharine Houreld)